Genting said in a recent filing that the payment of what it termed an administrative fine by a 95%-owned Indonesian subsidiary sharply curtailed its fourth-quarter net profit, according to The Edge Malaysia.
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Workers load fresh oil palm fruit bunches from a palm oil plantation in Hanjalipan village, East Kotawaringin, Central Kalimantan province, Indonesia, July 22, 2025. Photo by Reuters |
Net profit for the fourth quarter of last year shrunk 87% year-on-year to MYR14.14 million (US$3.6 million), it said.
The company did not provide further details on the fine, but said it was paid to Indonesia’s Forest Area Enforcement Task Force.
The results add to a series of public disclosures highlighting the impact of Indonesia’s crackdown on resource companies.
President Prabowo Subianto has been reclaiming land from plantation and mining operators and imposing penalties for alleged misuse of forest areas, according to Bloomberg.
The task force, established by Prabowo last year, has seized millions of hectares of agricultural and other land and levied fines amounting to billions of U.S. dollars.
Indonesian planter Astra Agro Lestari Tbk said it paid an administrative fine of IDR571 billion rupiah ($34 million) to the forest task force in December, following regulatory changes related to spatial planning in the forestry sector.
In the same month, Singapore-listed agribusiness Indofood Agri Resources said its Indonesian subsidiary and related units were slapped with administrative charges amounting to IDR2.34 trillion.
The company said in a statement this week that the penalty was paid “in good faith” into a government escrow account, “pending a final resolution.”
Genting Plantations, however, said the impact of the fine was partly offset by higher revenue driven by stronger palm fruit production.
The company is the agriculture arm of the Genting Group, focusing primarily on oil palm cultivation and related agribusiness activities, mainly in Malaysia and Indonesia.
The Genting Group is a Malaysian conglomerate with core businesses spanning leisure and hospitality (including integrated resorts and casinos), plantations, power generation, property, oil and gas, and biotechnology.
